Founder Proposes Burning Millions of Synthetix (SNX) Tokens.

Founder Proposes Burning Millions of Synthetix (SNX) Tokens.


Decentralized finance (DeFi) protocol Synthetix may burn a significant percentage of its supply if its founder’s proposal for a 3:1 split of SNX and a buyback and burn feature is approved, according to a recent blog update.

Decentralized finance (DeFi) protocol Synthetix could potentially burn a whole lot of percentage of its supply if the project moves forward with a proposition from its founder.

In a new blog update, Synthetix founder Kain Warwick lays out 12 different suggestions or opportunities for the project moving forward.

1 of Warwick’s 12 points includes a 3:1 split of SNX and a buyback and burn function. Although while Synthetix still requires some inflation for incentives and liquidity for pools, Warwick reveals a buy-and-burn feature could still be useful.

“Even if inflation is the only solution here, I do not think it negates having a countervailing force of buy-back and burn. If we do a 3:1 split we would have around 90m additional crypto tokens to buy back and burn with a market value of $60 Million. Where does the money come from to burn these tokens? Treasury fee yield.

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According to recent yield the Treasury Council (TC) is earning around $5m per year, if 100 percent of this is allocated to buybacks it would take about 10 years to complete. If volume of trading increases over the following few years this timeline would be reduced significantly.”

Warwick mentioned that the idea is still just conceptual, and nothing has been confirmed by a Treasury Council vote.

Synthetix is a protocol that allows for synthetic assets to be announced for trading on Ethereum (ETH). 1 of the top platforms powered by Synthetix is Kwenta.io, which allows for trading digital currencies, fiat currencies, and other assets with leverage in a decentralized manner.

Synthetix recently launched support for Pepe Coin (PEPE), Sui Network (SUI), Blur, XRP Ripple (XRP), Polkadot (DOT), Floki Inu (FLOKI), and Injective Protocol (INJ) perpetual contracts (perps). Reports by the project, over 40 perps are now available for trading.

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Featured Image: Shutterstock/Max Krasnov/Natalia Siiatovskaia



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